Electronic filing of W-2 and 1099 forms—extension of deadline, 46.3(3)
ARC 3429C
REVENUE DEPARTMENT[701]
Adopted and Filed
Pursuant to the authority of Iowa Code sections 421.14, 422.16, and 422.68, the Department of Revenue hereby amends Chapter 46, "Withholding," Iowa Administrative Code.
In 2016, pursuant to ARC 2739C, the Department implemented new filing requirements for W-2 and 1099 forms in order to combat tax refund fraud. The adopted rules phased in the new filing requirements over two years. For tax year 2016, only withholding agents with at least 50 employees were required to electronically file W-2 forms with the Department. For tax year 2016, any withholding agents could voluntarily file 1099 forms and withholding agents with fewer than 50 employees could voluntarily file W-2 forms. For tax year 2017, the rule required all withholding agents to electronically file W-2 and 1099 forms with the Department.
To allow additional time to implement these new requirements, the Department is extending the phase-in for one year as described in the amendment below. The amendment will only require withholding agents with at least 50 employees to file W-2 forms electronically for tax years 2016 and 2017. The requirement that all withholding agents file W-2 and 1099 forms electronically will take effect with tax year 2018 rather than 2017.
Notice of Intended Action was published in the Iowa Administrative Bulletin as ARC 3284C on August 30, 2017. No public comments were received. This amendment is identical to that published under Notice.
Any person who believes that the application of the discretionary provisions of this rule would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).
The Department adopted this amendment on October 4, 2017.
After analysis and review of this rule making, no negative impact on jobs has been found.
This amendment is intended to implement Iowa Code section 422.16(2)"b."
This amendment will become effective November 29, 2017.
The following amendment is adopted.
Amend paragraphs 46.3(3)"f" and "g" as follows:
f. W-2 forms.
(1)Beginning in 2017 for tax year years 2016 and 2017, withholding agents with at least 50 employees are required to electronically file W-2 forms with the department of revenue on or before the last day of January following the tax year. Withholding agents with fewer than 50 employees may, but are not required to, electronically file W-2 forms with the department of revenue on or before the last day of January following the tax year.
(2)Beginning in 2018 2019 for tax year 2017 2018 and all subsequent tax years, all withholding agents are required to electronically file W-2 forms with the department of revenue on or before the last day of January following the tax year.
(3)The department of revenue may, in a case involving a hardship, extend the requirement to electronically file to the 2019 2020 tax year. No extension of time shall be granted unless the withholding agent makes a written request to the department of revenue for such action.
(4)Penalty. Failure to meet the filing requirements set out in this paragraph will subject withholding agents to the penalties under Iowa Code section 422.16(10).
g. 1099 forms and W-2G forms.
(1)Beginning in 2017 for tax year years 2016 and 2017, withholding agents with at least fifty 1099 forms and W-2G forms may file 1099 forms and W-2G forms with the department of revenue on or before the last day of January following the tax year.
(2)Beginning in 2018 2019 for tax year 2017 2018 and all subsequent tax years, all withholding agents are required to electronically file all 1099 forms and W-2G forms on or before the last day of January following the tax year.
(3)The department of revenue may, in a case involving a hardship, extend the requirement to electronically file to the 2019 2020 tax year. No extension of time shall be granted unless the withholding agent makes a written request to the department of revenue for such action.
(4)Penalty. Failure to meet the filing requirements set out in this paragraph will subject withholding agents to the penalties under Iowa Code section 422.16(10).
[Filed 10/4/17, effective 11/29/17]
[Published 10/25/17]
Editor's Note: For replacement pages for IAC, see IAC Supplement 10/25/17.
The official published PDF of this document is available from the Iowa General Assembly’s Administrative Rules page.
View the Iowa Administrative Bulletin for 10/25/2017.
The following administrative rule references were added to this document. You may click a reference to view related notices.
Rule 701-46.3(3)"f" Rule 701-46.3(3)"g"The following Iowa code references were added to this document. You may click a reference to view related notices.
Iowa Code 422.16(10)The following keywords and tags were added to this document. You may click a keyword to view related notices.
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